Regional and global integration could have significant impact on the location of industries. Traditional neoclassical models suggest that industrial location is determined by countries’ comparative advantage. However, recent developments in “new economic geography” underline the role of market size on the location choice of firms. The purpose of this article is to offer an empirical assessment of the industrial location among countries of the euro-mediterranean area. These countries differ in productivity, wages and market potential. Our aim is to investigate whether traditional and new theoretical forecasts can explain industrial location in such heterogeneous areas. Using a two-way panel data model, we estimate the geographical distribution of industries across 16 countries, 25 sectors and 16 years. Results suggest that the relevance of traditionnal and recent theories depends on countries’ and industries’ characteristics. The location of demand matters for determining the “North’s” industrial specialization and the location of high-technology industries. However, to explain the geographical distribution of low-technology firms and to understand “South’s” specialisation, the two approaches are relevant. On the one hand, these firms are established in the "South" because of lower labor costs. On the other and, they stay in the euro-mediterranean area because of the accessibility to the Northern European market.